The country's catering sector is experiencing sustained acceleration in chain store development, driven by market consolidation and operational quality upgrades, according to the 2026 White Paper on the Development of Restaurant Chains in China released by the China Chain Store & Franchise Association and Meituan.

The report shows that the percentage of restaurants in the country that are part of a chain rose from 21 percent in 2023 to 25 percent in 2025, an average annual increase of 2 percent. This growth highlights the sector's resilience in adapting to evolving consumer preferences and operational challenges. Across segments — including beverages, fast foods, snacks and marinated flavors — leading chain enterprises with national influence have emerged in every category.

"This is exactly why we upgraded the 'Top 100 Catering Franchises' to the 'Top 300 Chain Restaurants' this year," said Peng Jianzhen, CCFA director. "With the chain rate rising, more brands are emerging, and as niche categories diversify, benchmark chains are appearing across every sector — Chinese, Western, casual dining, fast food, beverages and baking."

The white paper identified a clear divergence among brands of different sizes, according to the Meituan Research Institute. Top-tier brands with over 10,000 outlets continue to consolidate leadership through standardized operations and strong brand influence.

Chains with between 101 and 500 stores increased store count in 2025 by 28.3 percent year-on-year, while chains boasting between 501 and 1,000 outlets also expanded rapidly, increasing store numbers by 32.6 percent year-on-year. The smallest chains, typically with three to 10 outlets, shrank sharply, with an 18.5 percent year-on-year reduction, largely due to limited risk resilience and underdeveloped supply chains.

Xiaocaiyuan, a "Top 300" Chinese chain restaurant brand, stands as a prime example of high-quality growth. Founded in 2013, Xiaocaiyuan has expanded to over 800 directly operated stores. According to its first interim report following its public listing in August 2025, the company achieved revenue of 2.71 billion yuan ($397.5 million) during the reporting period, a year-on-year increase of 6.5 percent, with the growth driven by the steady expansion of its store network. Net profit reached 382 million yuan, representing a surge of 35.7 percent compared to the same period in 2024.